While some might argue that their primary motive is to reduce meter-reading costs, the potential they offer extends far beyond mere financial savings. These meters now enable us to gain a more accurate understanding of consumer and business demand, all while introducing the concept of variable tariffs.

A central problem in our electricity supply is the continuous fluctuation in wholesale market prices, changing every 30 minutes. This volatility poses a considerable challenge for suppliers attempting to set fixed consumer tariffs. Prices can surge to nearly £1 per kilowatt-hour one moment, and the next moment, the grid may be offering incentives to take surplus electricity off their hands. This challenge intensifies as we increase our production of sustainable energy sources like wind power, which cannot be easily turned off. Therefore, we must shift our energy consumption to off-peak times to maximise the benefits of abundant and currently affordable clean energy.

Smart meters have paved the way for innovative energy providers like Octopus Energy to introduce a range of new tariffs that track the wholesale price. Regarding their Agile tariff, prices change every 30 minutes to reflect current costs, just like they do in the wholesale market. This means that every day, consumers receive information about the tariffs for the following day and can plan their energy usage accordingly. Should you charge your electric vehicle during the night? Is it better to run your washing machine before work or before bedtime? When should you activate your heat pump to heat water and your home? Correct timing can lead to substantial reductions in energy bills, while incorrect decisions can result in alarming increases. While these tariffs are still primarily adopted by early adopters, they are on the verge of becoming mainstream.

The underlying challenge in all these advancements and changes is that they necessitate a shift in user behaviour. Just as we've adapted to the practice of segregating our waste to facilitate recycling, we must also reimagine how we use and think about energy, especially in a world where electrification is becoming the norm. Historically, and especially in recent times due to the ongoing energy crisis, the thought of energy wastage strikes fear into the hearts of homeowners. The spectre of financial distress looms as consumers grapple with choices like whether to turn on the heating.

Yet, the more significant challenge is how to impact individual wallets and how we generate, store, and consume electricity across whole countries. Behavioural change can potentially eliminate a significant chunk of emissions, with 62% of all emissions attributed to this factor. The National Grid estimates that shifting energy demand to off-peak hours could save £14 billion annually by 2040, all by individuals altering their behaviour.

This very prospect excites us at Tewke about our mission and purpose. If we can automate this behavioural shift, it can be a win-win for homeowners, the nation, and the environment. By creating a platform that can be installed in any home, offering an exceptional home automation experience, we can simultaneously make hundreds of decisions every minute to optimise energy consumption based on everyone’s unique lifestyle. This marks the beginning of an exciting new revolution—power to the people.